Live in Indiana, work in Ohio
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State income tax: $4,554 a year
Living in Indiana and working in Ohio, you'd pay about $4,554 in state income tax on $100,000 of wages.
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State tax at different salaries
| Wages | To OH | To IN | Total | If you worked in IN |
|---|---|---|---|---|
| $50,000 | $0 | $2,254 | $2,254 | $2,254 |
| $75,000 | $0 | $3,404 | $3,404 | $3,404 |
| $100,000 | $0 | $4,554 | $4,554 | $4,554 |
| $150,000 | $0 | $6,854 | $6,854 | $6,854 |
| $250,000 | $0 | $11,454 | $11,454 | $11,454 |
Single filer, all wages earned in Ohio, 2026 state tax rules, standard deductions. State income tax includes Indiana's average county income tax. Other local income taxes are not included.
What to do
- Reciprocity: IN residents working in OH exempt from OH state tax on wages; file Form IT-4NR. Not available to 20%+ S-corp owner-employees. OH municipal income taxes still apply.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Ohio: ~600+ municipalities levy income tax on wages at work location (commonly 1-2.5%; e.g., Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%), regardless of state reciprocity. Residence city may also tax, with a full/partial/no credit for work-city tax depending on the city. 20-day occasional-entrant rule before work-city withholding starts. Many school districts also levy a resident-only income tax.
- Indiana: Every Indiana county levies a local income tax. Indiana residents pay the rate of the county they live in on January 1. People who live in another state pay the tax of the Indiana county where they principally work on January 1, and that includes residents of reciprocity states (KY, MI, OH, PA, WI) who file Form WH-47: the reciprocity agreements cover only the state tax.
Special credit rules
- IN: Reverse-credit arrangements (notably AZ, CA, OR): IN nonresidents from those states claim credit on the IN nonresident return. Separately, IN county income tax is owed by nonresidents on IN-sourced wages (county of principal employment).
Frequently asked questions
Do I pay Ohio income tax if I live in Indiana?
No. Under the reciprocity agreement you pay only Indiana. IN residents working in OH exempt from OH state tax on wages; file Form IT-4NR. Not available to 20%+ S-corp owner-employees. OH municipal income taxes still apply.
Do I have to file taxes in both Indiana and Ohio?
Usually you file only one state return (a resident return in Indiana), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. Under the reciprocity agreement only Indiana taxes your wages: about $4,554 on $100,000.
Related
- Live in Ohio, work in Indiana
- Moving from Indiana to Ohio
- Moving from Ohio to Indiana
- Live in Indiana, work in Illinois
- Live in Indiana, work in Kentucky
- Live in Indiana, work in Michigan
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.